It is appalling, as Gary Younge says, for..."
Click here (http://www.guardian.co.uk/commentisfree/2010/sep/01/young-people-unemployment-immigration) to read the full story
Tuesday, August 31, 2010
Response: Young people need secure jobs, not casual and part-time work
"The young want a means to live full and independent lives. But such jobs are increasingly hard to find
Chilean mine company owners to be questioned over causes of collapse
"Bosses to be quizzed over safety failures that led to 33 miners being trapped, as engineers begin drilling rescue shaft
The owners of Chile's San..."
Click here (http://www.guardian.co.uk/world/2010/aug/31/chilean-mine-bosses-questioned-collapse) to read the full story
Weaning the world off oil | John Sauven
"Greenpeace's occupation of an Arctic rig carries a simple message: stop drilling for fossil fuels
Ten days ago I received a letter from Cairn Energy,..."
Click here (http://www.guardian.co.uk/commentisfree/cif-green/2010/aug/31/wean-world-off-oil-greenpeace-arctic-protest) to read the full story
Fashion designers need to be entrepreneurs
"These days it's not enough just being a talented designer. You have to be an entrepreneur too, says Elle magazine's Lorraine Candy, while two leading..."
Click here (http://www.guardian.co.uk/lifeandstyle/2010/aug/31/fashion-designers-need-be-entrepreneurs) to read the full story
Costcutting US bosses earn 42% more than rivals, says IPS research
"Institute for Policy Studies research shows US bosses who sacked most staff during recession earn more than their peers
The good times keep rolling..."
Click here (http://www.guardian.co.uk/business/2010/sep/01/costcutting-us-bosses-earn-more-ips-research) to read the full story
Cell C rejigs debt with R2,2bn from China
"CELL C has borrowed €240m (R2,2bn) from China Development Bank to refinance a portion of its debts."
Click here (http://www.businessday.co.za/articles/Content.aspx?id=119691) to read the full story
Standard Bank poaches StanChart Africa banker
"Standard Bank has hired Standard Chartered's former head of transaction banking in Africa, as it looks to do more deals between Africa and Asia, a..."
Click here (http://vne-resource.iol.co.za/r.php?artid=5628426&setid=0§id=552&url=busrep&vne=1&csect=Business+Report) to read the full story
New state pay offer raises fear for deficit, ratings
"AS UNIONS canvassed their members yesterday on whether to accept the government's latest wage offer to end a crippling public service strike, analysts..."
Click here (http://www.businessday.co.za/articles/Content.aspx?id=119692) to read the full story
Five hundred Limpopo mine workers laid off
"At least 500 miners have been laid off at Coal of Africa's Vele colliery near Musina in Limpopo, the SABC has reported."
Click here (http://vne-resource.iol.co.za/r.php?artid=5628425&setid=0§id=552&url=busrep&vne=1&csect=Business+Report) to read the full story
Unions wait for feedback on offer
"Public service trade unions were on Tuesday evening gathering reports on whether their members have accepted or rejected the government's new wage..."
Click here (http://vne-resource.iol.co.za/r.php?artid=5628424&setid=0§id=552&url=busrep&vne=1&csect=Business+Report) to read the full story
Chinese manufacturing snaps out of slowdown
"BEIJING (Reuters) - China's manufacturing economy staged a moderate rebound in August after slowing for several months under the onslaught of..."
Click here (http://feeds.reuters.com/~r/reuters/businessNews/~3/-aq6uvCEL2I/idUSTRE6800UM20100901) to read the full story
CEOs For Sale! Come and Get Your CEOs!
"I've heard from two sources close to the Digg CEO search that there were a glut of good candidates. That's something companies always say, and I..."
Click here (http://feedproxy.google.com/~r/Techcrunch/~3/7l6dyNdjJTM/) to read the full story
FDIC Finds 829 U.S. Banks at Risk
"More than a tenth of U.S. banks remain at risk of failure even as some industry indicators, including credit quality, show signs of revival."
Click here (http://feeds.wsjonline.com/~r/wsj/xml/rss/3_7011/~3/1ywHY50-ZNM/SB10001424052748703467004575463593315990592.html) to read the full story
Obama Economic Team Weighing Tax Cuts, Infrastructure Spending To Spur Economy: WSJ
"The Obama administration is considering a range of new measures to boost economic growth, including tax cuts and a new nationwide infrastructure..."
Click here (http://www.huffingtonpost.com/2010/08/31/obama-economic-team-tax-cuts-infrastructure_n_701435.html) to read the full story
Obama administration: "Piracy is flat, unadulterated theft"
"US Commerce Secretary Gary Locke went to Nashville yesterday to address a symposium on intellectual property enforcement, and he threw down the..."
Click here (http://feeds.arstechnica.com/~r/arstechnica/index/~3/Tr7cBG7Mb64/obama-administration-piracy-is-flat-unadulterated-theft.ars) to read the full story
Hitachi plans IPO of hard-drive unit: sources (Reuters)
"Reuters - Hitachi Ltd (6501.T) is planning an initial public offering of its hard-drive unit in the United States, possibly by year's end, sources..."
Click here (http://us.rd.yahoo.com/dailynews/rss/business/*http://news.yahoo.com/s/nm/20100901/bs_nm/us_hitachi_ipo) to read the full story
Oil creeps above $72 after big fall on weak demand (AP)
"AP - Oil prices rose slightly to above $72 a barrel Wednesday in Asia after a steep drop the previous day amid evidence that U.S. crude supplies..."
Click here (http://us.rd.yahoo.com/dailynews/rss/business/*http://news.yahoo.com/s/ap/20100901/ap_on_bi_ge/oil_prices) to read the full story
US finally reforming its high-tech export control system
"Many high-technology companies have run afoul of the US' Export Control System, which regulates the overseas sales of items that can be put to use for..."
Click here (http://feeds.arstechnica.com/~r/arstechnica/index/~3/gBRK3fUg2sA/us-finally-reforming-its-high-tech-export-control-system.ars) to read the full story
Most Asian Shares Up Slightly
"Most Asian stock markets were slightly higher Wednesday. The Nikkei was down 0.1% as investors looked to policy makers to stem the yen's strength."
Click here (http://feeds.wsjonline.com/~r/wsj/xml/rss/3_7011/~3/koqh2IEcIyw/SB10001424052748703467004575464382108198638.html) to read the full story
Samuel H. Williamson: The Macro Economics Social Security - Part Three
"From the comments on the previous postings, I see that I am still not getting my points across to everyone. SirWillae does not like comparing..."
Click here (http://www.huffingtonpost.com/samuel-h-williamson/the-macro-economics-socia_b_701227.html) to read the full story
Obama administration: "Piracy is flat, unadulterated theft"
"US Commerce Secretary Gary Locke went to Nashville yesterday to address a symposium on intellectual property enforcement, and he threw down the..."
Click here (http://feeds.arstechnica.com/~r/arstechnica/index/~3/Tr7cBG7Mb64/obama-administration-piracy-is-flat-unadulterated-theft.ars) to read the full story
Samuel H. Williamson: The Macro Economics Social Security - Part Three
"From the comments on the previous postings, I see that I am still not getting my points across to everyone. SirWillae does not like comparing..."
Click here (http://www.huffingtonpost.com/samuel-h-williamson/the-macro-economics-socia_b_701227.html) to read the full story
Obama Economic Team Weighing Tax Cuts, Infrastructure Spending To Spur Economy: WSJ
"The Obama administration is considering a range of new measures to boost economic growth, including tax cuts and a new nationwide infrastructure..."
Click here (http://www.huffingtonpost.com/2010/08/31/obama-economic-team-tax-cuts-infrastructure_n_701435.html) to read the full story
Stock exchange home closed
HARARE - Municipal authorities on Tuesday shutdown a building housing the
Zimbabwean Stock Exchange (ZSE), living brokers and investors unsure whether
the bourse will open for business today.
Zimbabwean Stock Exchange (ZSE), living brokers and investors unsure whether
the bourse will open for business today.
The ZSE conducts one call over session every weekday in the morning on the
floor of the exchange.
But it was uncertain whether there will be any trading today after Harare
City Council officials shut down 101 Union Building, which houses the ZSE,
saying tenants at the building have not paid water bills.
There are several tenants at the building in Harare's central business
district and it was not clear whether the ZSE was among those failing to pay
water bills estimated at US$7 000.
A ZSE official told ZimOnline that the bourse could temporarily relocate to
another building to allow trade to continue and avoid inconveniencing
brokers.
"We are likely to move trading to another building," said the official, who
did not want to be named because he did not have permission to discuss the
matter with the Press.
ZSE chief executive Emmanuel Munyukwi could not be reached for a comment on
the matter last night.
Failure to trade would be a morale sapping blow to a ZSE that has seen trade
shrink 19 percent since December last year, while market capitalisation
dropped to US$3.19 billion in June from nearly $4 billion at the beginning
of the year, according to figures released by the Reserve Bank of Zimbabwe
recently.
The drop in trade figures is chiefly blamed on foreign investors fleeing the
bourse, scared by a controversial government scheme to compel foreign-owned
businesses to sell stake to local blacks.
Under the programme all foreign- owned firms valued at US$500, 000 or more
will be required to transfer significant stake to locals by 2015.
President Robert Mugabe and his ZANU PF party, who enacted the law in 2008
before forming a power-sharing government with Prime Minister Morgan
Tsvangirai's MDC, had initially wanted foreigners to cede 51 percent
shareholding to blacks.
They backed own after stiff opposition from Tsvangirai and agreed to set
varying percentages of shareholding foreign-owned companies in various
sectors of the economy must transfer to locals.
Analysts say the empowerment programme is a huge disincentive to potential
foreign investors who will question the wisdom of pouring money into an
economy where the government can intervene to force them to cede stake to
locals. - ZimOnline.
Chris Guillebeau: How to Stand Out in Any Job
"Regardless of what kind of work you do, it's usually not difficult to set yourself apart by going beyond the status quo."
Click here (http://www.huffingtonpost.com/chris-guillebeau/how-to-stand-out-in-any-j_b_700462.html) to read the full story
Government makes available $70 million to boost economy
The inclusive government and the Africa Export Import Bank (Afreximbank) on
Monday unveiled a US$100 million joint loan facility to try to revive the
country's economy.
Monday unveiled a US$100 million joint loan facility to try to revive the
country's economy.
The US$100 million line of credit that will benefit the private sector saw
Afrexim bank contributing US$50 million, while the government chipped in
with US$20 million to the fund, which will be channeled through banks. It is
expected that another financial institution will chip in with some cash to
push the funds to US$100 million.
Prime Minister Morgan Tsvangirai told guests at the official launch in
Harare that Afreximbank remains fully committed to supporting the country's
economic recovery 'so that it retains its position as an economic power
house of southern Africa.'
The prime Minister added that the purpose of the revival fund was to
resuscitate a broad range of firms in the productive sector, especially
those in the agriculture and manufacturing sectors. The facility was
reportedly the brainchild of the Ministry of Finance, headed by Tendai Biti
from the MDC-T.
Biti said the government has been struggling to secure credit lines, with
the country receiving just over US$500 million in aid loans last year and a
further US$200 million by June.
He said the formation of the inclusive government in 2009 saw an improvement
in inflows, with disbursed lines of credit amounting to US $656 million
being recorded in 2009. Zimbabwe stills needs over US$10 billion to revive
its economy.
But the core problem still remains. The Global Political Agreement has not
yet been implanted and there is still no real sharing of power in the unity
government. The full implementation of the GPA and genuine power sharing
would instantly see mass investment and a real hope for an improvement in
the economy.
Gold, silver rise as investors seek safer assets (AP)
"AP - Wary investors turned to gold Tuesday, sending the price to its highest level in two months, despite slightly more optimistic economic news."
Click here (http://us.rd.yahoo.com/dailynews/rss/business/*http://news.yahoo.com/s/ap/20100831/ap_on_bi_ge/us_commodities_review) to read the full story
Zimbabwe's Marange gem output to rise
* Zimbabwe set to become leading producer
* $2 bn annual revenues forecast
* Work begins at $20 million diamond processing facility
By Nelson Banya
MOUNT HAMPDEN, Zimbabwe, Aug 31 (Reuters) - Zimbabwe's diamond output from
its Marange fields will reach 40 million carats in the next three years,
with annual revenues expected at around $2 billion, a government adviser
said on Tuesday.
The government says it has stockpiled 4.5 million carats from its two joint
venture mines in Marange since January and that it sold its first stones
last month after approval from global diamond industry regulator, the
Kimberley Process (KP).
"With the new diamond find in Chiadzwa (Marange), we're estimated at 40
million carats per year and $2 billion per year in revenue," said Belgian
diamond expert Filip van Loere in an interview. He is advising the
government on ensuring compliance with the KP.
"Zimbabwe has been propelled to the number one spot as the world's most
important player and it will be number three in value. That is estimated to
come along within the next two to three years."
Zimbabwe's unity government, formed by President Robert Mugabe and Morgan
Tsvangirai, now prime minister, says it needs $10 billion to fix an economy
ravaged by hyperinflation, which peaked at 500 billion percent in December
2008.
Van Loere said Zimbabwe could surpass top diamond producers like Russia,
Botswana and South Africa, but said a sudden increase in output on the
global market could force prices down.
"The main issue for Zimbabwe is to be careful in harvesting this resource.
Zimbabwe might add 20 percent to global trade, but then prices will go down
at least 60-70 percent, so we have to be responsible, Zimbabwe should not
become the main producer just for the sake of it," van Loere said.
Zimbabwe's government has formed two joint venture firms -- Mbada Diamonds
and Canadile Miners -- with South African partners to mine the Marange
diamonds, but van Loere said there was scope for more mines in the vast
fields.
On Tuesday, Canadile Miners launched the construction of a $20 million
diamond processing and auction centre to the west of the capital Harare.
"Currently, the two mines occupy 10 percent of the total area. We need two
or three more firms in the area," said van Loere.
Over 30,000 illegal diggers descended on the Marange fields in 2006,
prompting the government to deploy the army to stop rampant panning and
smuggling.
Rights groups, however, accuse the security forces of committing atrocities
during the crackdown on the panners. (Editing by William Hardy)
Zimbabwe firm builds diamond polishing, cutting centre
MOUNT HAMPDEN, Zimbabwe (AFP) - A diamond firm operating from Zimbabwe's
Marange diamond fields has begun constructing a multi-million dollar cutting
and polishing centre in the country, officials said Tuesday.
Marange diamond fields has begun constructing a multi-million dollar cutting
and polishing centre in the country, officials said Tuesday.
The Zimbabwe Diamond Technology Centre, which is being constructed by
Canadile miners, one of the three firms operating in Marange, is set to
become operational within six months.
Faber Chidarikire, governor for Mashonaland West province said the diamond
industry was set to revive the country's economic woes.
"The ailing country's economy shall be revived through the proceeds,
marketing rates, making life easy for the minister of finance (Tendai
Biti)," Chidarikire said.
Early this month, Zimbabwe resumed trading of Marange diamond sales since
international regulators partially lifted a ban imposed after the military
seized control of the mines.
The sale generated about 30 million US dollars, according to government
figures.
Upon completion, the centre is expected to create 7,000 jobs.
Cougan Matanhire, chairman of Canadile miners said the centre would funnel
all the rough diamond streams of Zimbabwe into one professional and high
security area.
"This is the centre where we will transform rough diamonds into polished
diamonds," Matanhire told delegates who attended the launch.
A Belgian, diamond expert, Filip Van Laere said Marange fields could produce
40 million carats annually.
Once fully completed, the 20 million US dollar centre will have among other
things banks, a diamond college and insurance firms.
In January, diamond watchdog Kimberley Process halted the sale of stones
from Zimbabwe's eastern Marange diamond fields after documenting military
abuses against civilians.
The Zimbabwean government reacted by imposing a blanket ban on the export of
diamonds until the Kimberley Process gave its Marange diamonds a clean bill
of health.
Mpofu faces court action for allowing Chiadzwa diamond sales
Mines Minister Obert Mpofu is set to face court action for allowing the sale
of diamonds mined at the controversial Chiadzwa diamond fields, despite a
Supreme Court order barring the stones from being sold.
of diamonds mined at the controversial Chiadzwa diamond fields, despite a
Supreme Court order barring the stones from being sold.
The title holder of the Chiadzwa claim, African Consolidated Resources
(ACR), has lodged legal papers against Mpofu for violating the Supreme Court
order. The order was handed down earlier this year as part of the ownership
wrangle between ACR and the government approved firms mining the site.
The government owned Zimbabwe Mining Development Corporation (ZMDC) has
joined forces with Mbada Mining and Canadile Mining, who were licensed to
mine the Chiadzwa site after it was seized in 2006 from the UK based ACR.
Since the first High Court ruling in their favour in 2009, ACR has been
embroiled in a legal battle over ownership of the site.
The ZMDC and Mines Minister Mpofu then appealed this High Court decision and
the Supreme Court subsequently ordered all mining operations be suspended
until the issue was finalised. Chief Justice Godfrey Chidyausiku ruled that
despite the ZMDC being in physical control of the claims, "they must cease
all mining activities and it is so ordered."
"Allowing applicants (ZMDC) to continue mining, pending appeal, has the
potential of causing irreparable damage to the respondents (ACR) should the
appeal fail," the Chief Justice ruled.
But mining has continued regardless, and last month a multi million dollar
auction of the stones was launched in Harare. ACR now wants Mpofu to face
High Court action for allowing the sales. ACR also wants the High Court to
throw out the appeal made by Mpofu, over Chiadzwa's legal ownership.
"As a government minister he has a legal and moral duty to see to it that
orders of (the High Court) and of the Supreme Court are obeyed and see to it
that the integrity of (the courts) is protected, by not openly and publicly
acting in defiance of a court order," reads part of the heads of arguments
filed by ACR's legal team.
Zim economy gets $50-million boost
"Zimbabwe has secured a $50-million loan facility from the Africa Export Import Bank to revive its agriculture and manufacturing industries."
Click here (http://www.mg.co.za/article/2010-08-31-zim-economy-gets-50million-boost) to read the full story
Unions mull govt's increased wage offer
"State workers will vote on Tuesday on an increased wage offer made by the government to try to end a nearly three-week-old strike, Cosatu said."
Click here (http://www.mg.co.za/article/2010-08-31-unions-mull-govts-increased-wage-offer) to read the full story
World stocks fall on economic worries
"LONDON (Reuters) - World stocks fell on Tuesday in markets dominated by concerns the U.S. economy is sliding back into recession, prompting further..."
Click here (http://feeds.reuters.com/~r/reuters/businessNews/~3/VrOqh8E7AEg/idUSTRE67G0CV20100831) to read the full story
Stock futures point to Wall Street extending decline
"LONDON (Reuters) - Stock index futures pointed to a lower open for Wall Street on Tuesday, extending a sharp decline in the previous session, on..."
Click here (http://feeds.reuters.com/~r/reuters/businessNews/~3/P3cObk_JCEo/idUSTRE67I1MJ20100831) to read the full story
German official unemployment rate stable at 7.6% (AFP)
"AFP - The German unemployment rate was stable in August at 7.6 percent of the workforce, official figures showed on Tuesday as the number of people..."
Click here (http://us.rd.yahoo.com/dailynews/rss/business/*http://news.yahoo.com/s/afp/20100831/bs_afp/germanyeconomyunemployment) to read the full story
Fiat to return to US market (AFP)
"AFP - American automaker Chrysler plans to sell 50,000 Fiat 500 minicars in the United States in 2011, a source told AFP on Monday, as the Italian..."
Click here (http://us.rd.yahoo.com/dailynews/rss/business/*http://news.yahoo.com/s/afp/20100831/ts_alt_afp/usautochryslerfiat) to read the full story
-
India economy grows 8.8 percent (AFP)
"AFP - India's economy grew 8.8 percent in the fiscal first quarter, its best performance since 2007, data showed Tuesday, as the country returned to..."
Click here (http://us.rd.yahoo.com/dailynews/rss/business/*http://news.yahoo.com/s/afp/20100831/wl_sthasia_afp/indiaeconomygrowth) to read the full story
IMF Expands Loan Options
"The International Monetary Fund said it would broaden the kinds of loans it offers to encourage a large swath of developing countries to get financial..."
Click here (http://feeds.wsjonline.com/~r/wsj/xml/rss/3_7011/~3/Hx0JUJQdiC4/SB10001424052748703369704575461722624461634.html) to read the full story
FW: Snaptu: Tenth of Mexico's federal police fired
"Battle with drug cartels brings anti-corruption drive in which officers fail lie-detector or toxicology tests
A tenth of Mexico's federal police..."
Click here (http://www.guardian.co.uk/world/2010/aug/31/tenth-federal-police-officers-fired-mexico-drug-wars) to read the full story
Government increases wage offer to public sector strikers - Reuters source
"Government increased its wage raise offer to unions representing 1.3 million striking state workers, a source said on Monday, trying to end a strike..."
Click here (http://www.businessday.co.za/articles/Content.aspx?id=119590) to read the full story
Sasol BEE gas venture seeks R11m penalty for fixing prices
"THE Competition Tribunal will consider an application tomorrow to confirm the settlement agreement between the Competition Commission and piped gas..."
Click here (http://www.businessday.co.za/articles/Content.aspx?id=119589) to read the full story
Hurricane Earl grows to Category 4
"With Puerto Rico, the U.S. Virgin Islands and soon the East Coast of the U.S. in its reach, Hurricane Earl prompted warnings for those areas from..."
Click here (http://rss.cnn.com/~r/rss/cnn_topstories/~3/9iyxqxS26Qg/index.html) to read the full story
-
The Saving Mentality is Hurting the Economy's Recovery
"The logic of the economic recovery isn't working—or, at any rate, not well. By that logic, over-borrowed Americans would repay loans and replenish..."
Click here (http://www.newsweek.com:80/2010/08/30/the-saving-mentality-is-hurting-the-economy-s-recovery.html?from=rss) to read the full story
Gmail Priority Inbox Sorts Your Email For You. And It’s Fantastic.
"Email overload has finally met its match. Tomorrow, Gmail is rolling out a new feature called Priority Inbox that is going to be a Godsend for those..."
Click here (http://feedproxy.google.com/~r/Techcrunch/~3/MltgM3aT638/)
Oil falls below $74 as global stock markets slump (AP)
"AP - Oil prices fell below $74 a barrel Tuesday in Asia, extending losses from the previous session as global stock markets slump after a..."
Click here (http://us.rd.yahoo.com/dailynews/rss/business/*http://news.yahoo.com/s/ap/20100831/ap_on_bi_ge/oil_prices) to read the full story
Obama's economic strategy: What does it mean for you? (The Newsroom)
"The Newsroom - President Obama today sought to refocus the White House's efforts to shore up the U.S. economy, with a pledge to extend tax cuts for..."
Click here (http://us.rd.yahoo.com/dailynews/rss/business/*http://news.yahoo.com/s/ynews/20100830/pl_ynews/ynews_pl3514) to read the full story
RIM Avoids Indian Ban Hammer, Cooperates With Security Authorities Over BlackBerry E-Mail
"Looks like RIM has dodged a bullet in India, at least for the time being. The BlackBerry maker has provided the Indian government with "proposals for..."
Click here (http://www.mobilecrunch.com/2010/08/30/rim-avoids-indian-ban-hammer-cooperates-with-security-authorities-over-blackberry-e-mail/) to read the full story
Sunday, August 29, 2010
FW: [KhulSports] Google, Facebook and Apple among 11 companies targeted in patent...
"Company headed by ex-Microsoft founder Paul Allen claims patents
relating to e-commerce and search held by Interval Licensing have
been..."
relating to e-commerce and search held by Interval Licensing have
been..."
Click here
(http://www.guardian.co.uk/technology/blog/2010/aug/29/paul-allen-interval-patent-lawsuit-google-facebook-apple)
to read the full story
--------------------------------------------------------------
Ovi Mail: Making email access easy
http://mail.ovi.com
Zimbabwe's Central Bank to lay off 85 per cent of staff: minister
Harare - Zimbabwe's bankrupt central bank is to retrench 85 per cent of its
bloated staff complement to help it move back into the black and function as
a reliable national bank, according to Finance Minister Tendai Biti.
bloated staff complement to help it move back into the black and function as
a reliable national bank, according to Finance Minister Tendai Biti.
The layoffs will mark the end of what analysts say was the use of the
Reserve Bank of Zimbabwe (RBZ) to prop up President Robert Mugabe's party
after years of misrule exhausted the country's finances and led to economic
collapse in 2008.
'There are about 2,600 employees at the bank but the board will reduce the
staff to around 400,' Biti was quoted as saying in the state-run Sunday Mail
newspaper.
He said the slashing of staff was the result of new legislation to restrict
the bank's operations to managing monetary policy, monitoring the banking
industry and to act as lender of last resort.
The changes at the bank are among the few major agreements to have been
carried out under Zimbabwe's 18-month-old coalition government between
Mugabe and former opposition leader Morgan Tsvangirai, now prime minister.
Tsvangirai's Movement for Democratic Change (MDC) accuses Mugabe's Zanu-PF
party of stalling on other promised democratic reforms.
Biti confirmed that the RBZ, under governor Gideon Gono, owed 1.1 billion US
dollars, for which it has been forced by creditors to sell assets. The debt
rendered much its new mandate 'academic for the moment,' he said.
Under Gono, the bank confiscated hundreds of millions of US dollars from the
accounts of major companies and non-governmental organizations. The money
used to pay for handouts to Zanu-PF party members, and to buy vehicles,
tractors, fuel and other goods which were distributed to party faithful
before elections.
To maintain the spending, Gono had money printed as fast as the bank presses
could produce, resulting finally in inflation of 500 billion per cent and
the abolition of the national currency last year.
Saturday, August 28, 2010
Muponda refutes Interfin Bank Zimbabwe Chairman Farai Rwodzi’s settlement claim The Zimbabwe...
"Neither my legal representatives nor I have received compensation of any nature from Interfin, its directors or shareholders for the 309 million..."
Click here (http://newzimsituation.com/muponda-refutes-interfin-bank-zimbabwe-chairman-farai-rwodzi-8217-s-settlement-claim-the-zimbabwe-guardian-83086.htm) to read the full story
Barack Obama is down, but it's far too early to count him out | Andrew Rawnsley
"Despite an impressive record by the president, discontented American voters are turning against the Democrats
They won't give him a break – literally..."
Click here (http://www.guardian.co.uk/commentisfree/2010/aug/29/andrew-rawnsley-obama-second-term) to read the full story
Trapped miners: depression fears mar 'miracle' as Chileans rally around
"The people of Chile offer overwhelming support to the families of the 33 men amid concern the miners' spirits are flagging
It was a week of..."
Click here (http://www.guardian.co.uk/world/2010/aug/29/trapped-miners-chile-depression-fears) to read the full story
Interest rate rises not enough to stop a crash, says Bank of England chief
"In a startling departure from the orthodox view, deputy BoE governor Charles Bean says raising rates is not enough to rein in economic recklessness
A..."
Click here (http://www.guardian.co.uk/business/2010/aug/29/interest-rate-rises-inadequate-says-bean) to read the full story
Good companies guide: results in full
"How the FTSE 100 fared, rated on societal and ecological sustainability"
Click here (http://www.guardian.co.uk/business/table/2010/aug/27/observer-good-companies-guide-full-results) to read the full story
Four years that shook the financial world
"A farewell column from the Observer's Business Editor
In the four years since I took the job of business editor at the Observer, the world has..."
Click here (http://www.guardian.co.uk/business/2010/aug/29/four-years-that-shook-the-world) to read the full story
23 Things They Don't Tell You About Capitalism by Ha-Joon Chang | Book review
"Ha-Joon Chang offers a masterful debunking of some of the myths of capitalism, writes John Gray
The world is awash with books that claim to explain..."
Click here (http://www.guardian.co.uk/books/2010/aug/29/ha-joon-chang-23-things) to read the full story
Zuma criticises strike, hopes for deal
"South African President Jacob Zuma today accused striking state workers of abandoning the sick at hospitals and said he expected a deal to be reached..."
Click here (http://www.businessday.co.za/articles/Content.aspx?id=119426) to read the full story
Microsoft co-founder sues over browser patents
"Microsoft co-founder Paul Allen has sued a string of leading web companies claiming that many of their basic functions violate patents he developed..."
Click here (http://vne-resource.iol.co.za/r.php?artid=5623592&setid=0§id=552&url=busrep&vne=1&csect=Business+Report) to read the full story
Washington approves United, Continental merger
"The United States has cleared the way for a merger between US carriers United and Continental that will create the world's biggest airline."
Click here (http://vne-resource.iol.co.za/r.php?artid=5623593&setid=0§id=552&url=busrep&vne=1&csect=Business+Report)
Is Glenn Beck Running for Office?
"Ask those who showed up at Glenn Beck's rally in Washington this weekend and they'll likely tell you that in their dream world, Beck would run for..."
Click here (http://www.newsweek.com:80/2010/08/28/is-glenn-beck-runing-for-office.html?from=rss) to read the full story
Too Few Women In Tech? Stop Blaming The Men. Or At Least Stop Blaming Me.
"Success in Silicon Valley, most would agree, is more merit driven than almost any other place in the world. It doesn't matter how old you are, what..."
Click here (http://feedproxy.google.com/~r/Techcrunch/~3/shU3y-KrT7A/) to read the full story
BOJ May Hold Emergency Meeting as Early as Monday
"The Bank of Japan will likely hold an emergency policy board meeting early this week to discuss additional monetary easing measures aimed at slowing..."
Click here (http://feeds.wsjonline.com/~r/wsj/xml/rss/3_7011/~3/9ZyWrJ5rwUI/SB10001424052748703669004575458510641913260.html) to read the full story
Jordan's Central Bank Chief Defends Role of U.S. Dollar
"Jordan's central bank chief defended the U.S. currency's role as the chief global reserve currency on Saturday, and fretted about the potential for a..."
Click here (http://feeds.wsjonline.com/~r/wsj/xml/rss/3_7011/~3/bf8XeBGsI9g/) to read the full story
Zara takes the plunge into crowded online market (AFP)
"AFP - Europe's largest clothing retailer, Spain's Inditex, is taking its flagship Zara brand online, but it can expect stiff competition from other..."
Click here (http://us.rd.yahoo.com/dailynews/rss/business/*http://news.yahoo.com/s/afp/20100829/bs_afp/spaininternetretailclothinginternetcompanyzara) to read the full story
Chevron: Most oil removed from Utah leak site (AP)
"AP - A Chevron spokesman says very little of the 33,000 gallons of oil that spilled into a Salt Lake City creek in June remains in the area."
Click here (http://us.rd.yahoo.com/dailynews/rss/business/*http://news.yahoo.com/s/ap/20100828/ap_on_bi_ge/us_oil_leak_utah) to read the full story
EU prods China for faster yuan rise: G20 draft (Reuters)
"Reuters - This story does not carry a dateline to protect the identity and location of a source. (Reuters) - The European Union thinks China has made..."
Click here (http://us.rd.yahoo.com/dailynews/rss/business/*http://news.yahoo.com/s/nm/20100828/bs_nm/us_g20_eu) to read the full story
China tells Japan wage demands "understandable" (Reuters)
"Reuters - China says it is understandable for its workers to demand higher wages after foregoing pay increases during the worst of the economic..."
Click here (http://us.rd.yahoo.com/dailynews/rss/business/*http://news.yahoo.com/s/nm/20100828/bs_nm/us_china_japan_labour) to read the full story
Tobacco sales reach 115 million kg mark — TIMB
AT least 115 million kg of tobacco had been auctioned by last week
representing the highest output in seven years, figures released ahead of
the end of the selling season on Friday show.
representing the highest output in seven years, figures released ahead of
the end of the selling season on Friday show.
Figures from the Tobacco Industry and Marketing Board (TIMB) show that 116
904 898 kg had gone under the hammer at the country's two auction floors on
Wednesday.
The selling season opened on February 16.
In the process US$341 010 216 was realised from the auction up from the
US$174 457 761 farmers got during the same period last year.
The last target set by TIMB was 114 million kg after production had
surpassed previous targets of 77 million kg and 93 million kg.
The output is the highest since 2003 when 165 842 000 kg were auctioned.
From there output went on a decline and reached 48 million kg in 2008, the
lowest output since 1980.
However, there are projections that next year's output would increase by 50%
basing on the tobacco seed sold so far, according to Andrew Matibiri, the
TIMB chief executive officer.
"So far more than 600 kg of tobacco seed has been sold and this will cover
over 100 000 hectares.
"Last year we planted 67 000 hectares," Matibiri said.
According to TIMB figures output as of Wednesday was nearly double the
tobacco auctioned during the same period last year when 58 570 652 kg were
sold.
Matibiri said tobacco has proved to be a crop of choice for farmers and this
has led to an increase in production.
The prices have also been good luring farmers to grow the golden leaf.
Average price per kg peaked at US$3,47 on March 26 and was US$2,90 on
Wednesday.
During the same period last year the average price was US$1,90.
TIMB said final delivery of flue-cured tobacco to the auction floors is
Thursday this week.
All growers are advised to complete their grading and baling operations well
before the final sales day.
Contract sales will continue until further notice.
The flue-cured tobacco clean up sale for the 2010 marketing season will be
held on September 28, TIMB said.
"Depending on the volume of deliveries the clean-up sale may be continued
for more than one day, until all delivered tobacco has been sold," TIMB said
in a notice to stakeholders.
Tobacco is one of the country's largest foreign currency earners and
contributed 26% of the national gross domestic product last year up from 12%
in 2008.
Zimbabwe and other tobacco producing countries have to stave off measures
from the World Health Organisation's Framework Convention for Tobacco
Control (FCTC) proposed guidelines that would have a bearing on the crop.
Article 9 of the FCTC proposes measures for testing and measuring the
contents and emissions of tobacco products and for the regulation of these
contents and emissions under Article 9.
Articles 17 & 18 of the convention advocate support to farmers to grow
alternative crops and the protection of the environment and health of
persons respectively.
BY OUR STAFF
SA Reserve Bank AGM to be delayed
"The South African Reserve Bank has announced that its annual general meeting of shareholders has been delayed."
Click here (http://www.businessday.co.za/articles/Content.aspx?id=119402) to read the full story
SABC board suspends Mokoetle
"SABC CEO Solly Mokoetle has been suspended by the public broacaster's board pending the outcome of a disciplinary hearing."
Click here (http://vne-resource.iol.co.za/r.php?artid=5622603&setid=0§id=552&url=busrep&vne=1&csect=Business+Report) to read the full story
'Plan B' in works to help trapped miners
"The 33 miners trapped in a Chilean mine have been told for the first time that they will be stranded up to four months. But a proposed "Plan B" may..."
Click here (http://rss.cnn.com/~r/rss/cnn_topstories/~3/GCe9XoyjHuA/index.html) to read the full story
Cosatu: No talks between govt and unions
"There have been no new wage talks between public-service unions and the government, the Congress of South African Trade Unions said on Friday."
Click here (http://www.mg.co.za/article/2010-08-28-cosatu-no-talks-between-govt-and-unions) to read the full story
Older Workers Are More Innovative Than the Young
"Despite stereotypes of entrepreneurs as fresh-faced youngsters, new research has found that older workers are more likely to innovate than their..."
Click here (http://www.newsweek.com:80/2010/08/27/older-workers-are-more-innovative-than-the-young.html?from=rss) to read the full story
-
Kenya: A Land of Endless Mobile Possibility (TCTV)
"Some may get crushes on Hollywood stars. Some get crushes on blue, fictional Aliens. Sarah gets crushes on countries. And right now she is obsessed..."
Click here (http://feedproxy.google.com/~r/Techcrunch/~3/KFTzG6PHM64/) to read the full story
Professor Leads Austrian Economics Revival
Sent from my Nokia phone
-----Original Message-----
From: Snaptu
Sent: 28/08/2010 07:08:32
Subject: Snaptu: Professor Leads Austrian Economics Revival
-----Original Message-----
From: Snaptu
Sent: 28/08/2010 07:08:32
Subject: Snaptu: Professor Leads Austrian Economics Revival
"Peter J. Boettke is emerging as the intellectual standard-bearer for a revival of the Austrian school of economics."
Click here (http://feeds.wsjonline.com/~r/wsj/xml/rss/3_7011/~3/kC9_zO8tEbs/SB10001424052748703418004575455911922562120.html) to read the full story
--
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Friday, August 27, 2010
Ben Bernanke calls for help to revive the stuttering US economy | Richard Adams
"Ben Bernanke, chairman of the Federal Reserve, says the Fed needs help to revive the US economy. But it won't get any
What did the chairman of the..."
Click here (http://www.guardian.co.uk/world/richard-adams-blog/2010/aug/27/ben-bernanke-jackson-hole-federal-reserve) to read the full story
Ben Bernanke promises to step in as US economy veers back towards recession
"Markets rally as Federal Reserve chairman tells conference "the committee will use its tools as needed" to support recovery
US central bank boss Ben..."
Click here (http://www.guardian.co.uk/business/2010/aug/27/ben-bernanke-us-economy) to read the full story
Nedbank pay-off will be long-term
"Even if Old Mutual takes £1.5-billion offshore, the HSBC takeover will bring other benefits."
Click here (http://www.mg.co.za/article/2010-08-27-nedbank-payoff-will-be-longterm) to read the full story
Zimbabwe too broke for elections next year - state media
"Zimbabwe's electoral commission will not be able to draw up a clean voter's roll and organise elections next year because of lack of money."
Click here (http://vne-resource.iol.co.za/r.php?artid=5622426&setid=0§id=552&url=busrep&vne=1&csect=Business+Report) to read the full story
SA remains 'gateway to Africa'
"Merger and acquisition activity ground to a halt during the recession, but the outlook is improving."
Click here (http://www.mg.co.za/article/2010-08-27-sa-remains-gateway-to-africa) to read the full story
India says BlackBerry must give access or face ban
"NEW DELHI (Reuters) - India insisted on Friday it would block some BlackBerry services next week if the smartphone maker did not address security..."
Click here (http://feeds.reuters.com/~r/reuters/businessNews/~3/Fu4qEY3e_Hw/idUSTRE67P0VT20100827) to read the full story
Stock futures edge up ahead of GDP data, Bernanke talk
"NEW YORK (Reuters) - Stock index futures rose slightly on Friday ahead of a speech from Federal Reserve Chairman Ben Bernanke and an estimate on..."
Click here (http://feeds.reuters.com/~r/reuters/businessNews/~3/EPGZIIaq1o0/idUSTRE67I1MJ20100827) to read the full story
Japan PM Kan vows firm moves against strong yen
"TOKYO (Reuters) - Japan's prime minister said on Friday he will take firm measures on currencies when needed and will meet the Bank of Japan governor,..."
Click here (http://feeds.reuters.com/~r/reuters/businessNews/~3/cHoJ5Z8tfNQ/idUSTRE67P0FL20100827) to read the full story
There We Go Again: Dell Offers $1.8 Billion For 3PAR – 3PAR Accepts
"The bidding war continues. Dell announced today that 3PAR has accepted its increased offer to acquire the storage leader for $27 per share in cash, or..."
Click here (http://feedproxy.google.com/~r/Techcrunch/~3/1ij4IFVjDNY/) to read the full story
Uganda Repossesses Oil Field
"The Ugandan government has repossessed the Kingfisher oil field in exploration area 3A of the Lake Albert basin after the field's exploration license..."
Click here (http://feeds.wsjonline.com/~r/wsj/xml/rss/3_7011/~3/GxV8ajfP_OI/SB10001424052748704147804575454973805196444.html) to read the full story
Only shareholders should res olve dispute — Meikles
MEIKLES Africa Ltd has written to Reserve Bank Governor Gideon Gono saying
only shareholders should resolve the dispute pitting its majority
shareholder, John Moxon, and Kingdom Financial Holdings (KFHL) founder Nigel
Chanakira.
Gono had given Chanakira and Moxon an ultimatum to resolve their dispute by
the end of August, threatening the two feuding businessmen with unspecified
action.
In a letter to Gono dated August 23, Meikles chairman Farai Rwodzi said his
board would adopt the wishes of its shareholders when the company holds its
Extraordinary General Meeting (EGM).
Meikles was blocked from holding an EGM by Gono and has not yet indicated
when it will hold the meeting to chart the way forward in its frosty merger.
Meikles said Chanakira, through his company Valley Field (Pvt) Ltd, had
presented three offers which they said were "off the mark" from the initial
agreement.
"In the event of an acceptable offer made before the EGM, such an offer will
be put to shareholders for approval," reads the letter in part.
"Please note an offer can now only be accepted by shareholders. The board
will only adopt what shareholders would have agreed," the letter said.
The EGM's main business would be to amend the terms of the de-merger
resolution adopted by shareholders in June last year, which gave Chanakira a
chance to agree terms with Meikles and Econet Wireless Zimbabwe to acquire
the two investors' equity interest in KFHL.
If shareholders give the nod, the Meikles board would proceed to de-merge
the two entities with Moxon maintaining his 43,9% stake in the group.
Chanakira would be a minority shareholder in Kingdom Financial Holdings Ltd
(KFHL) with a 6% stake.
Moxon would also be entitled to two board representatives as the single
largest shareholder in the financial services company.
Two weeks ago Gono and Finance minister Tendai Biti told Chanakira and Moxon
that they had "had enough of this nonsense" and warned that they would be
forced to take "drastic action".
"We are not sure that either shareholders of Meikles or Kingdom will benefit
in the end," Gono said in a local paper a week ago.
Chanakira could lose KFHL after Meikles Ltd recently rejected his offer to
buy its 43, 95% stake in the firm.
He had been given until August 6 to present an acceptable plan on how he
would raise US$15 million to buy Meikles out of Kingdom.
Meikles said Chanakira's plan of action did not meet their expectations.
The banker had proposed to pay US$7, 5 million within 30 days while the
balance would be settled over six months, saying he had the backing of a
financial institution that he could not disclose to Meikles.
The Meikles board would not accept the proposal saying there was no
guarantee that Chanakira would pay up and that the bank would approve his
loan application.
Insiders at Kingdom yesterday said the KMAL saga had reached a stage where
the two opposing parties spoke to each other and the outcome now depends on
shareholders.
Analysts said RBZ had no formal or official role in the KMAL dispute.
Chanakira's Kingdom Bank entered into a merger with Meikles to form Kingdom
Meikles Africa Ltd (KMAL) which also included Tanganda and Cotton Printers
in 2008.
The merger only lasted for 18 months after major differences between
Chanakira and Moxon emerged, leading to the proposed de-merger.
Gono said the dispute had ceased to be a Chanakira-Moxon matter as they were
jeopardising the stability of the banking sector at a time when the public
"will soon see the decisive resolution to all other outstanding disputes
involving Trust, Royal, Barbican and Intermarket banks as well as other
cases which may have involved allegations of externalisation of funds such
as Shabanie Mashaba Mine".
He alleged both parties in the dispute should be reminded that "none of them
had absolutely clean hands to show to the public of Zimbabwe in terms of
historical conduct".
only shareholders should resolve the dispute pitting its majority
shareholder, John Moxon, and Kingdom Financial Holdings (KFHL) founder Nigel
Chanakira.
Gono had given Chanakira and Moxon an ultimatum to resolve their dispute by
the end of August, threatening the two feuding businessmen with unspecified
action.
In a letter to Gono dated August 23, Meikles chairman Farai Rwodzi said his
board would adopt the wishes of its shareholders when the company holds its
Extraordinary General Meeting (EGM).
Meikles was blocked from holding an EGM by Gono and has not yet indicated
when it will hold the meeting to chart the way forward in its frosty merger.
Meikles said Chanakira, through his company Valley Field (Pvt) Ltd, had
presented three offers which they said were "off the mark" from the initial
agreement.
"In the event of an acceptable offer made before the EGM, such an offer will
be put to shareholders for approval," reads the letter in part.
"Please note an offer can now only be accepted by shareholders. The board
will only adopt what shareholders would have agreed," the letter said.
The EGM's main business would be to amend the terms of the de-merger
resolution adopted by shareholders in June last year, which gave Chanakira a
chance to agree terms with Meikles and Econet Wireless Zimbabwe to acquire
the two investors' equity interest in KFHL.
If shareholders give the nod, the Meikles board would proceed to de-merge
the two entities with Moxon maintaining his 43,9% stake in the group.
Chanakira would be a minority shareholder in Kingdom Financial Holdings Ltd
(KFHL) with a 6% stake.
Moxon would also be entitled to two board representatives as the single
largest shareholder in the financial services company.
Two weeks ago Gono and Finance minister Tendai Biti told Chanakira and Moxon
that they had "had enough of this nonsense" and warned that they would be
forced to take "drastic action".
"We are not sure that either shareholders of Meikles or Kingdom will benefit
in the end," Gono said in a local paper a week ago.
Chanakira could lose KFHL after Meikles Ltd recently rejected his offer to
buy its 43, 95% stake in the firm.
He had been given until August 6 to present an acceptable plan on how he
would raise US$15 million to buy Meikles out of Kingdom.
Meikles said Chanakira's plan of action did not meet their expectations.
The banker had proposed to pay US$7, 5 million within 30 days while the
balance would be settled over six months, saying he had the backing of a
financial institution that he could not disclose to Meikles.
The Meikles board would not accept the proposal saying there was no
guarantee that Chanakira would pay up and that the bank would approve his
loan application.
Insiders at Kingdom yesterday said the KMAL saga had reached a stage where
the two opposing parties spoke to each other and the outcome now depends on
shareholders.
Analysts said RBZ had no formal or official role in the KMAL dispute.
Chanakira's Kingdom Bank entered into a merger with Meikles to form Kingdom
Meikles Africa Ltd (KMAL) which also included Tanganda and Cotton Printers
in 2008.
The merger only lasted for 18 months after major differences between
Chanakira and Moxon emerged, leading to the proposed de-merger.
Gono said the dispute had ceased to be a Chanakira-Moxon matter as they were
jeopardising the stability of the banking sector at a time when the public
"will soon see the decisive resolution to all other outstanding disputes
involving Trust, Royal, Barbican and Intermarket banks as well as other
cases which may have involved allegations of externalisation of funds such
as Shabanie Mashaba Mine".
He alleged both parties in the dispute should be reminded that "none of them
had absolutely clean hands to show to the public of Zimbabwe in terms of
historical conduct".
Paul Nyakazeya
Families given 10 days to vacate diamond field
FORTY families from the Chiadzwa diamond fields and Mukwada villages in
Manicaland have been given a 10-day notice to leave their homes and make way
for Mbada Diamonds without compensation.
The villagers were given the notice on Wednesday by the District
Administrator's office and are expected to relocate to Arda Transau by
September 4.
Mutare West MP Shua Mudiwa yesterday confirmed the eviction.
"I have received a report of the relocation. Right now I cannot give you
much detail because I am at a Copac meeting. I will get to the bottom of
it," he said.
Mudiwa said the villagers were promised groceries and school fees for the
next term by Mbada Diamonds.
"There was no written agreement, it was just verbal. They were told that if
anyone wanted further explanations they should go to the provincial or
district administrator or the governor."
Manicaland provincial governor, Christopher Mushowe, is on record as saying
the villagers would only be compensated after the relocations.
Acting President of the Chiadzwa Community Development Trust (CCDT), an
organisation that represents Chiadzwa villagers, Malvern Mudiwa, told
Zimbabwe Independent that villagers from Chiadzwa and Mukwada were not happy
with the way the relocation was being handled by the mining companies and
the government.
Mudiwa said: "The villagers are angry that the government is not consulting
them in these relocations. This time 22 villagers from Chiadzwa ward and 22
from Mukwada ward are being relocated by Mbada (Diamonds). Last Saturday
they were told that they should gather for a meeting at Zengeni shops for an
explanation but when they arrived for the meeting there was a bus waiting to
ferry them to Arda Transau so that they can have a look at the temporary
structures set up for them there."
"No compensation issues were discussed despite people requesting for
concrete written compensation agreements with the mining companies. They
also want to benefit from the diamonds and not be dumped on some useless
land. They want employment guaranteed for their children since they were
affected by the relocation."
CCDT also claimed that some villagers were complaining about the way they
were being treated by Chinese company Anjin in the area when they went to
seek employment.
Shamiso Mtisi of Zimbabwe Environmental Lawyers Association (ZELA) said the
government and mining companies should seriously consider providing
villagers with adequate shelter, compensation, social services and give them
adequate notice before they are moved.
"We are not happy with the issue of this notice. There is inadequate time in
their notices and the compensation issues will not have been agreed on. It
doesn't make sense. We are not in disagreement about the relocation but the
manner in which it is done."
"We are trying to engage the relevant government departments to respect the
rights of the people of Chiadzwa but it is very difficult," he said.
Mbada Diamonds chairman Robert Mhlanga could not be reached for comment.
However, earlier this month the Independent reported that families relocated
from Chiadzwa were dumped at an abandoned farmhouse where a number of
families affected by the relocation were living in disused tobacco barns.
Manicaland have been given a 10-day notice to leave their homes and make way
for Mbada Diamonds without compensation.
The villagers were given the notice on Wednesday by the District
Administrator's office and are expected to relocate to Arda Transau by
September 4.
Mutare West MP Shua Mudiwa yesterday confirmed the eviction.
"I have received a report of the relocation. Right now I cannot give you
much detail because I am at a Copac meeting. I will get to the bottom of
it," he said.
Mudiwa said the villagers were promised groceries and school fees for the
next term by Mbada Diamonds.
"There was no written agreement, it was just verbal. They were told that if
anyone wanted further explanations they should go to the provincial or
district administrator or the governor."
Manicaland provincial governor, Christopher Mushowe, is on record as saying
the villagers would only be compensated after the relocations.
Acting President of the Chiadzwa Community Development Trust (CCDT), an
organisation that represents Chiadzwa villagers, Malvern Mudiwa, told
Zimbabwe Independent that villagers from Chiadzwa and Mukwada were not happy
with the way the relocation was being handled by the mining companies and
the government.
Mudiwa said: "The villagers are angry that the government is not consulting
them in these relocations. This time 22 villagers from Chiadzwa ward and 22
from Mukwada ward are being relocated by Mbada (Diamonds). Last Saturday
they were told that they should gather for a meeting at Zengeni shops for an
explanation but when they arrived for the meeting there was a bus waiting to
ferry them to Arda Transau so that they can have a look at the temporary
structures set up for them there."
"No compensation issues were discussed despite people requesting for
concrete written compensation agreements with the mining companies. They
also want to benefit from the diamonds and not be dumped on some useless
land. They want employment guaranteed for their children since they were
affected by the relocation."
CCDT also claimed that some villagers were complaining about the way they
were being treated by Chinese company Anjin in the area when they went to
seek employment.
Shamiso Mtisi of Zimbabwe Environmental Lawyers Association (ZELA) said the
government and mining companies should seriously consider providing
villagers with adequate shelter, compensation, social services and give them
adequate notice before they are moved.
"We are not happy with the issue of this notice. There is inadequate time in
their notices and the compensation issues will not have been agreed on. It
doesn't make sense. We are not in disagreement about the relocation but the
manner in which it is done."
"We are trying to engage the relevant government departments to respect the
rights of the people of Chiadzwa but it is very difficult," he said.
Mbada Diamonds chairman Robert Mhlanga could not be reached for comment.
However, earlier this month the Independent reported that families relocated
from Chiadzwa were dumped at an abandoned farmhouse where a number of
families affected by the relocation were living in disused tobacco barns.
Wongai Zhangazha
Time bank prejudiced of US$3 0m — Tande
VITAL information was stolen from Time Bank when it was under curatorship,
prejudicing the financial institution of US$30 million, a senior bank
official has said.
Besides the theft, the bank claimed that the financial institution's central
computer system at its Anchor House headquarters in Harare was tampered
with.
The commercial bank was placed under curatorship by the Reserve Bank of
Zimbabwe for 18 months since October 2006. It was subsequently deregistered
after the curatorship, a decision the bank management successfully
challenged in the Administrative Court last year. Finance minister Tendai
Biti recently upheld the decision of the court and the bank is expected to
open its door to the public in October.
In a voluminous letter of complaint to Police Commissioner-General Augustine
Chihuri dated May 28 in possession of the Zimbabwe Independent, Time Bank of
Zimbabwe Ltd founder and MD Christopher Takura Tande accused the police of
dragging their feet on the two cases involving the theft and break-ins at
the bank.
The letter was copied to senior police officers, the Attorney-General's
Office, the Anti-Corruption Commission and the Zimbabwe Human Rights
Commission.
Tande said key data, including sealed envelopes containing security codes
and a register of the password holders, was stolen during the break-ins
while the suspected perpetrators have not been brought to justice.
"The handover/takeover (between RBZ and Time Bank) report revealed that
there were major break-ins into the locked premises of Time Bank," wrote
Tande. "Cases of theft of information and evidence of fraud, among other
things were uncovered. It was further discovered that some important keys
for Time Bank premises were missing, while some keys which were supposed to
be in the custody of RBZ were found inside the premises of Time Bank.
Various footmarks were discovered and noted."
Tande added that passwords to the bank's central computer system, sealed
envelopes containing security codes, and the register of the password
holders were also missing.
Ironically, Tande alleged that while police had turned a blind eye to the
break-ins and theft, counter charges by suspects in the cases were allegedly
being treated with "great zeal".
He wrote: "The pattern which is emerging is that whenever Time Bank makes a
report to the police, it is not actioned, but when someone makes a report
against Time Bank, its directors and shareholders, the police are quick to
act, arrest or detain us. As a result we are left with no option except to
lodge this complaint.
"We do not wish to stop the police from investigating us but we are
requesting for fairness in such investigations. In the interest of justice,
the cases against us should be investigated by different policemen other
than Superintendent Marodza, Detective Assistant Inspector Nyoni and
Detective Assistant Inspector Taruvinga of the Serious Fraud Section. Not
only should justice be done, it must be seen to be done."
He also alleged that keys that were supposed to be in the custody of the
former curator Tinashe Rwodzi of Pricewaterhouse Coppers and the RBZ had
mysteriously appeared in the bank after the alleged break-ins.
"The former curator said he had all the keys to Time Bank premises during
the period of curatorship from 27 October 2004 to June 2006, and thereafter
he handed over all such keys to certain officials of the RBZ for custody and
safe keeping," wrote Tande. "Time Bank officials have not accessed their
offices, since 27 October 2004. The curator said he never entered after the
curatorship on 30 June 2006. The RBZ officials also allege that they did not
access Time Bank after the end of curatorship on 30 June 2006. The question
is who left the keys inside the premises of Time Bank and where are the keys
and our computer passwords. What was the motive of breaking into the Bank?"
Tande suspected that former ZBC boss Onias Gumbo and unnamed RBZ officials
could be behind the theft of crucial data that could prejudice and retard
the transfer of the bank's assets. He said the bank was investigating Gumbo
for allegedly planning to dispossess it, its shareholders and directors of
their properties through "fictitious claims and malicious allegations".
"He (Gumbo) is either working with some officials of RBZ or he is
misrepresenting them by name-dropping in order to further his fraudulent
claims," Tande alleged.
Tande and his business associates are embroiled in a bitter ownership
wrangle over companies with Gumbo. Accusations and counter-accusations
between Tande and his business associates on one hand and Gumbo on the other
have been reported to the police.
Gumbo is currently appearing in court on a fraud charge involving ownership
of Unitime –– a company owned 50% by a close business associate of Tande ––
Antony Parehwa.
Tande told Chihuri that following litigation by Takta Investment (a company
he owns) against Gumbo's companies two years ago, the latter, through an
opposing affidavit, "revealed information which implicated him and other
people" in the break-ins at the bank.
Takta then sued Assetfin –– a company linked to Gumbo –– in order to stop it
from interfering with its housing development project.
However, Gumbo, according to the letter to Chihuri, "accessed confidential"
RBZ-compiled reports from an "undisclosed source" and "fabricated them" to
put a claim on the bank's assets. Tande suspects that the transfer of the
bank's assets back to the bank almost hit a snag when the RBZ said the
exercise should be "symbolic without full accountability" contrary to Time
Bank's recommendation for a normal check-listed handover-takeover.
The central bank, Rwodzi and the bank officials, according to the letter,
eventually agreed on a normal handover, which was finalised on June 22.
"The handover/takeover report also revealed that there were no audited
financial statements prepared during the period of curatorship as required
by law, and which are also necessary to verify and expose any malicious
allegations against the bank and its directors," Tande said. "Fortunately,
Time Bank was audited before curatorship and can verify financial
transactions of the pre-curatorship period."
On Monday, Tande told Harare magistrate Olivia Chiriga during the fraud
trial of Gumbo that he was neither a brother in law nor his relative. He
also said Gumbo was not a director of the bank.
Instead, Tande said, Gumbo was a net borrower from the bank who relied on
loans from the financial institution to bankroll his projects.
The court went into stitches when defence lawyer Wilson Manase insisted that
Gumbo was related to Tande who reacted by saying: "I have chosen to use
English in this court, and what you are saying about the meaning of
brother-in-law is different from that in the Oxford dictionary. According to
that dictionary, Gumbo is not my brother in law."
Tande said Section 35 of the Banking Act "protects bankers from abusive
borrowers like Gumbo, from misleading the Reserve Bank into thinking that
the loans to Gumbo's companies are insider loans which should be deducted
from the share capital of the bank."
Tande told the court that his company bought all the shares in Unitime
Investments (Pvt) Ltd from Pamela Matingo and Gumbo's co-accused Kwaziso
Bhosha and sold them to Parehwa. The banker denied ever being a joint
shareholder with Gumbo in Unitime.
He also testified on the unlawful entry into Time Bank and theft of vital
information.
prejudicing the financial institution of US$30 million, a senior bank
official has said.
Besides the theft, the bank claimed that the financial institution's central
computer system at its Anchor House headquarters in Harare was tampered
with.
The commercial bank was placed under curatorship by the Reserve Bank of
Zimbabwe for 18 months since October 2006. It was subsequently deregistered
after the curatorship, a decision the bank management successfully
challenged in the Administrative Court last year. Finance minister Tendai
Biti recently upheld the decision of the court and the bank is expected to
open its door to the public in October.
In a voluminous letter of complaint to Police Commissioner-General Augustine
Chihuri dated May 28 in possession of the Zimbabwe Independent, Time Bank of
Zimbabwe Ltd founder and MD Christopher Takura Tande accused the police of
dragging their feet on the two cases involving the theft and break-ins at
the bank.
The letter was copied to senior police officers, the Attorney-General's
Office, the Anti-Corruption Commission and the Zimbabwe Human Rights
Commission.
Tande said key data, including sealed envelopes containing security codes
and a register of the password holders, was stolen during the break-ins
while the suspected perpetrators have not been brought to justice.
"The handover/takeover (between RBZ and Time Bank) report revealed that
there were major break-ins into the locked premises of Time Bank," wrote
Tande. "Cases of theft of information and evidence of fraud, among other
things were uncovered. It was further discovered that some important keys
for Time Bank premises were missing, while some keys which were supposed to
be in the custody of RBZ were found inside the premises of Time Bank.
Various footmarks were discovered and noted."
Tande added that passwords to the bank's central computer system, sealed
envelopes containing security codes, and the register of the password
holders were also missing.
Ironically, Tande alleged that while police had turned a blind eye to the
break-ins and theft, counter charges by suspects in the cases were allegedly
being treated with "great zeal".
He wrote: "The pattern which is emerging is that whenever Time Bank makes a
report to the police, it is not actioned, but when someone makes a report
against Time Bank, its directors and shareholders, the police are quick to
act, arrest or detain us. As a result we are left with no option except to
lodge this complaint.
"We do not wish to stop the police from investigating us but we are
requesting for fairness in such investigations. In the interest of justice,
the cases against us should be investigated by different policemen other
than Superintendent Marodza, Detective Assistant Inspector Nyoni and
Detective Assistant Inspector Taruvinga of the Serious Fraud Section. Not
only should justice be done, it must be seen to be done."
He also alleged that keys that were supposed to be in the custody of the
former curator Tinashe Rwodzi of Pricewaterhouse Coppers and the RBZ had
mysteriously appeared in the bank after the alleged break-ins.
"The former curator said he had all the keys to Time Bank premises during
the period of curatorship from 27 October 2004 to June 2006, and thereafter
he handed over all such keys to certain officials of the RBZ for custody and
safe keeping," wrote Tande. "Time Bank officials have not accessed their
offices, since 27 October 2004. The curator said he never entered after the
curatorship on 30 June 2006. The RBZ officials also allege that they did not
access Time Bank after the end of curatorship on 30 June 2006. The question
is who left the keys inside the premises of Time Bank and where are the keys
and our computer passwords. What was the motive of breaking into the Bank?"
Tande suspected that former ZBC boss Onias Gumbo and unnamed RBZ officials
could be behind the theft of crucial data that could prejudice and retard
the transfer of the bank's assets. He said the bank was investigating Gumbo
for allegedly planning to dispossess it, its shareholders and directors of
their properties through "fictitious claims and malicious allegations".
"He (Gumbo) is either working with some officials of RBZ or he is
misrepresenting them by name-dropping in order to further his fraudulent
claims," Tande alleged.
Tande and his business associates are embroiled in a bitter ownership
wrangle over companies with Gumbo. Accusations and counter-accusations
between Tande and his business associates on one hand and Gumbo on the other
have been reported to the police.
Gumbo is currently appearing in court on a fraud charge involving ownership
of Unitime –– a company owned 50% by a close business associate of Tande ––
Antony Parehwa.
Tande told Chihuri that following litigation by Takta Investment (a company
he owns) against Gumbo's companies two years ago, the latter, through an
opposing affidavit, "revealed information which implicated him and other
people" in the break-ins at the bank.
Takta then sued Assetfin –– a company linked to Gumbo –– in order to stop it
from interfering with its housing development project.
However, Gumbo, according to the letter to Chihuri, "accessed confidential"
RBZ-compiled reports from an "undisclosed source" and "fabricated them" to
put a claim on the bank's assets. Tande suspects that the transfer of the
bank's assets back to the bank almost hit a snag when the RBZ said the
exercise should be "symbolic without full accountability" contrary to Time
Bank's recommendation for a normal check-listed handover-takeover.
The central bank, Rwodzi and the bank officials, according to the letter,
eventually agreed on a normal handover, which was finalised on June 22.
"The handover/takeover report also revealed that there were no audited
financial statements prepared during the period of curatorship as required
by law, and which are also necessary to verify and expose any malicious
allegations against the bank and its directors," Tande said. "Fortunately,
Time Bank was audited before curatorship and can verify financial
transactions of the pre-curatorship period."
On Monday, Tande told Harare magistrate Olivia Chiriga during the fraud
trial of Gumbo that he was neither a brother in law nor his relative. He
also said Gumbo was not a director of the bank.
Instead, Tande said, Gumbo was a net borrower from the bank who relied on
loans from the financial institution to bankroll his projects.
The court went into stitches when defence lawyer Wilson Manase insisted that
Gumbo was related to Tande who reacted by saying: "I have chosen to use
English in this court, and what you are saying about the meaning of
brother-in-law is different from that in the Oxford dictionary. According to
that dictionary, Gumbo is not my brother in law."
Tande said Section 35 of the Banking Act "protects bankers from abusive
borrowers like Gumbo, from misleading the Reserve Bank into thinking that
the loans to Gumbo's companies are insider loans which should be deducted
from the share capital of the bank."
Tande told the court that his company bought all the shares in Unitime
Investments (Pvt) Ltd from Pamela Matingo and Gumbo's co-accused Kwaziso
Bhosha and sold them to Parehwa. The banker denied ever being a joint
shareholder with Gumbo in Unitime.
He also testified on the unlawful entry into Time Bank and theft of vital
information.
Bernard Mpofu
Thursday, August 26, 2010
‘Punitive bank charges disco urage savings’
LOCAL banks are milking account holders through high charges to boost their
income and support the infrastructure they put in place when the economy was
faring better.
income and support the infrastructure they put in place when the economy was
faring better.
Individuals and corporates are forking out between US$25 and US$50 monthly
in bank charges, far above regional averages of below US$30.
But the Bankers Association of Zimbabwe Baz says local bank charges are in
line with regional charges. Figures obtained by businessdigest from local
banks last week show that an individual is charged between US$1 and US$5 for
a single withdrawal while companies pay up to US$9 to be issued with a
draft/RMO.
Telegraphic transfers cost between US$15 and US$30 for both corporates and
individuals depending on the amount involved. The same amount is charged for
deposits received by telegraphic transfer.
Asked if local bank charges were not too high when compared to the region,
Bankers Association of Zimbabwe (Baz) president John Mushayavanhu said local
charges where competitive.
"As Baz, we have done a study of bank charges in the region and overseas and
I can confirm to you that our charges are very comparable to the charges
prevailing in the region," he said.
"What we are focusing on now is continuous investment in electronic banking,
which reduces cost. On interest rates charged by banks, we are working,
through moral suasion within the association, to reduce the disparity on
interest rates being offered and/or charged by banks.
"This will go a long way in minimising the underlying contagion effect of
arbitrage opportunities associated with the disparity," Mushayavanhu said.
Local banks are also charging as much as US$15 for a single deposit.
The average regional charge for the same transaction is US$7.
Some banks are not charging for maintaining clients' accounts, but others
are levying US$3.
Corporates are being charged between US$8 and US$12 per month for monthly
account maintenance. FCA inter account transfers cost between US$1 and US$5
depending on the bank for both individuals and corporates.
Service charges for salary processing tariffs cost between US$1, 50 and US$4
per entry for manual salary payments. Unclaimed salaries cost between US$4
and US$7.
Companies are being charged between US$7 and US$10 per payroll for late
salary submissions.
Most banks have not set a charge for intermediated money transfer tax.
Facility negotiation fees for companies cost 5% of the value of the
overdraft or loan. Between US$4 and US$8 is charged for stop orders.
Economist David Mupamhadzi on Tuesday however told businessdigest that bank
charges in Zimbabwe were punitive, and discouraged people from using formal
channels for savings, a situation that is undesirable especially given the
liquidity problems that the economy is facing.
"Banks should play a leading role in mobilising savings across the whole
country through offering attractive returns, however in the case of Zimbabwe
this is not happening because of the high bank charges and the low returns
on deposits," he said.
"Most banks in the region do not use bank charges as a main source of
income, a situation which is prevalent in Zimbabwe. In South Africa for
example high bank charges are levied on people who withdraw huge amounts of
cash, as a way of discouraging people from withdrawing huge amounts of
cash," Mupamhadzi said.
He said people were encouraged to use internet banking and plastic cards
instead of carrying cash because of the high rates of crime.
"The high bank charges are not justified. There is need for the banks to
restructure their business models in line with the reality on the ground.
There is no way banks can maintain the same infrastructure, and staff, in
this current environment as they had a few years ago," Mupamhadzi added.
He said instead of doing "cosmetic adjustments, there is need for banks to
take tough decisions on issues like infrastructure, number of employees and
benefits, in light of the volume of business".
"There is need for banks in Zimbabwe to diversify their sources of income,
than relying on the bank charges to carry their high operating costs," he
said.
He said the proposed use of e-banking was a step in the right direction, and
is in line with developments in the region and beyond.
Accounts closed within six months are attracting a fee of between US$18 and
US$25, while reactivation of a dormant account costs between US$20 and
US$25. Services for bonds guarantees, securities and indemnities and bills
range between 5% and 10% of the amount at hand.
Charges for letters of guarantee, and guarantees are between 4% and 6% of
the amount involved. Letters of credit for foreign inward cost US$75 per
credit. Foreign outward for commercial banks cost 10% of the amount being
transacted.
Farayi Dyirakumunda, an executive director of African Investment Markets
said, "Banks typically derive their income from a combination of interest
income as well as non funded income which includes bank charges."
"The charges are somewhat justified given the cost structures prevailing in
the banking institutions," he said
"Given the subdued income from the core lending activities, fees and
commission income have been maximised to boost overall profitability but
this will gradually correct itself in response to market forces and
technological advances. Fees and service charges will however remain an
integral part of all banking institutions' income," said Dyirakumunda.
Bankers interviewed last week said banks were currently making money from
loan portfolios but given the uncertainty in the deposits levels, they were
becoming prudent by writing smaller percentages of loans so as to manage the
liquidity risk.
Paul Nyakazeya
New era for Zim motoring industry
JAGUAR Land Rover last November returned to Zimbabwe following the signing
of a dealership agreement with Premier Auto Services (PAS) that paved way
for the return of Land Rover vehicles to the country.
The deal was described as a new era for the Zimbabwe motoring industry.
Under the dealership, PAS will import and sell complete vehicles and provide
back-up service locally. Other aspects of the agreement will see the
extension of the franchise, enabling PAS to sell branded Land Rover goods in
their outlets.
This week businessdigest chief business reporter Paul Nyakazeya (PN) spoke
to PAS Business Development director Cosmas Marimo (CM) on their operations
and the motoring industry in general.
of a dealership agreement with Premier Auto Services (PAS) that paved way
for the return of Land Rover vehicles to the country.
The deal was described as a new era for the Zimbabwe motoring industry.
Under the dealership, PAS will import and sell complete vehicles and provide
back-up service locally. Other aspects of the agreement will see the
extension of the franchise, enabling PAS to sell branded Land Rover goods in
their outlets.
This week businessdigest chief business reporter Paul Nyakazeya (PN) spoke
to PAS Business Development director Cosmas Marimo (CM) on their operations
and the motoring industry in general.
PN: Your recent acquisition of the Jaguar Land Rover franchise pre-supposes
that a number of high tech diesel and petrol-engine vehicles will be
imported. How will these vehicles cope with the fuels available in Zimbabwe
given that there is apparently no local legislation to define the octane
rating of petrol and the sulphur content of diesel?
CM: Prior to our landing the importer status, we acquired detailed
documentation from most of the reputable international oil companies
operating in Zimbabwe, on the quality of fuel available on the market. It
was concluded that the locally available fuels were within acceptable norms.
You must also agree with me that we do not produce our own fuel, but import
all our fuels either through Mozambique or South Africa. On the other hand,
these are very robust engines and our advice to customers is to carry out
regular scheduled maintenance to avoid contamination.
PN: The issue of unleaded petrol is also wholly relevant as failure to use
this fuel will be detrimental to modern vehicles. How will you handle this?
CM: As a country we have made strides towards rectifying these fuel issues.
For instance we are made to believe that all the petrol coming through Beira
is unleaded and that there are mechanisms to ensure compliance. We are also
aware of government initiatives to enforce the use of unleaded fuel since
2006. High sulphur diesel has also been 'banned' in Zimbabwe.
You can clearly see that as a country we had prepared adequately for the
coming of the Jaguar. However, our discerning motorist should always be
vigilant and guard against buying low quality fuel.
PN: Will manufacturer-based warranties and service plans be available to
Zimbabwe customers?
CM: Premier Auto Services (Pvt) Limited is the only authourised / accredited
Jaguar importer in Zimbabwe and is fully authorised and capable to handle
all warranty issues.
On the other hand, I am sure you see facilities in the banking sector
opening up, credit becoming available and so on. I am sure it will not be
long before you see enough support coming through to cover service plans.
You see lease hire arrangements creeping back in already.
PN: Will the warranty be conditional on proof of use of an approved Jaguar
Land Rover service centre in the event of any claim being lodged?
CM: For any warranty claim to be valid, one has to use an accredited service
centre. These vehicles now require TLC (tender loving care) and we need to
ensure that they receive attention from properly / sufficiently equipped
facilities and trained technicians.
A service booklet is supplied with every car and authorised service centres
stamp them at each service.
PN: It was obviously a requirement that you invested in the latest
diagnostic equipment for your two new brands. Do you have the requisite
equipment and staff know-how from Jaguar Land Rover?
CM: Yes we have invested modest amounts in the infrastructure, equipment and
human capital. The latest diagnostic equipment -- Symptom Driven Diagnostic
(SDD) and Integrated Diagnostic Systems (IDS) -- have already been acquired
and being used in our workshops. Software and programmes on this equipment
are updated three times a week and we are confident that we are always
abreast of any changes or developments.
The technicians have been well trained as well as seconded to regional and
overseas dealerships. Training, of course, is on-going and all technicians
have access to internet- based training as well.
PN: What are the advantages of using this diagnostic equipment?
CM: The one upside is that this equipment is the only means of effecting any
sort of diagnosis on the vehicles. The SDD and IDS leads us to pin point
faults as well as display the faults and rectify them. What effectively was
a long process of guesswork in the past is narrowed down to a quick
resolution by using IDS and SDD.
PN: Given the relatively low volume of sales that can be expected in
Zimbabwe, how will you handle the supply of parts for the two brands?
CM: We have actually got stock on the shelf already and we are always
updating our stock fortnightly. Remember there are ageing Jaguar units in
Zimbabwe already and we have started supporting them through our workshop.
You will actually be surprised at the vehicle park in Zimbabwe; these
vehicles are not actually very few.
PN: Obviously high value parts can not be kept sitting unsold on shelves, so
what sort of delay will your customers face when parts have to be ordered
from outside?
CM: We are confident that we are building sufficient stocks of parts and
anticipating flows through the parts counter and the workshops. However, in
situations where we have to order against an enquiry, we have entered into
an arrangement with regional and overseas partners to have urgently needed
parts couriered to us within five to seven days.
PN: In the event of delays, will customers with cars under factory warranty
be offered courtesy vehicles as what commonly happens in established
markets?
CM: The Jaguar brand demands world class service, we have had to invest in
the best for the best. This is definitely one issue we are looking into as a
way to exceed our customers' expectations.
PN: Modern engines demand modern, purpose-formulated lubricants. What will
PAS (Premier Auto Services) be doing to comply with manufacturer specs in
this regard?
CM: I am glad that you asked this question and I know it is mainly targeted
at the 5,0l supercharged engines. Yes we have imported the special
lubricants for these high-performance engines. The overseas international
suppliers of these lubricants are represented here in Zimbabwe and
procurement is now within arms' reach.
By Paul Nyakazeya
Brett Chulu: Zim corporate governance: The business case
TWO weeks ago, Jon Younger, Dave Ulrich, two of human resources' leading
minds and I engaged in a passionate discussion over the concept of
'organisation capability', the brainchild of Dave.
Organisation capability is what an organisation is known for, what it is
good at. For customers, organisation capabilities become the brand they
experience; for the investor, they are the intangibles that give them
confidence in future earnings; for the employee inside the company they are
the desired culture. Obviously, the implications of this concept are
profound since organisation capabilities connect the internal customers to
the external customers. By delivering on organisation capabilities,
customers and investors will keep signing cheques over to the firm.
Organisation capabilities are the deliverables of HR, transfoming HR from
being a mere cost centre to a profit centre.
Theory without practice is useless. We need to illustrate organisation
capabilities in practice. There are over 14 capabilities. We will consider a
few. Charity begins at home. A careful analysis of Econet shows that its
phenomenal success rests on three capabilities namely: talent, learning and
shared mindset. Talent as an organisation capability means: we are good at
and known for attracting, retaining and motivating competent and committed
people.
The organisation capability of learning means: we are good at and known for
generating and sharing ideas with impact. Shared mindset as an organisation
capability means: we are good at and known for making sure our external
customers (investors and customers) and employees have a positive experience
with the company.
To illustrate further, we will look at Econet's learning capability in
brief. Econet is good at benchmarking (comparing best international
standards), be it communications technology or store layout and
intelligently adapting these. It explains largely why Econet is almost
always first to the market with the latest technologies. South African
telecommunications giants are still struggling with the 3G technology while
Econet has already introduced the 4G technology. Of late, due probably to
its on-going network upgrading programme, the shared mindset capability is
weakening, judging by the frequency of customer complaints over service.
Back to my discussion with the two HR fundis. I pointed out that in their
latest work on capabilities, corporate governance was not mentioned. I had
felt that corporate governance should be a key capability. Younger and
Ulrich concurred with me that indeed corporate governance is a key
capability. They pointed out they had spread aspects of corporate governance
into capabilities such as risk (we are good at and known for anticipating
and managing disruption, predictability and variance) and speed capability
(we are good at and known for making important changes fast). The discussion
led me to launch into a full research on the relationship between corporate
governance and finance.
We shall define corporate governance as an organisation capability: we are
good at and known for making and implementing decisions that ensure the
long-term success of the business. We will proceed to look at some studies
on the relationship between corporate governance and investment.
According to a paper from the Norwegian School of Management titled
Corporate governance and real investment decision firms that are
well-governed have a higher probability of making investments, have higher
market to book ratios (investors willing to pay higher share prices share
compared to current after-tax profits per share) and better access to
outside financing.
The Deutche Bank studied Standards and Poor 500 firms and found that over a
two-year period firms with improving corporate governance outperformed those
that did not by an average of 19%. In a paper written by the financial
giant ABN/AMRO titled Corporate Governance in Brazil: Is there a link
between corporate governance and financial performance in the Brazilian
market?' revealed that in 2004, firms based in Brazil, with higher corporate
governance rankings received price-to-earnings ratios that were 20% higher.
Price- to-earnings ratio, also known as P/E simply shows how many times the
current share price is bigger than the current after-tax profits per share
(earnings per share).
Normally, the higher the P/E, the more confident investors are that the firm
will in future continue to produce good after-tax profits. They show this
confidence through buying the shares now to ''book'' for a portion of the
anticipated growth in earnings.
A paper published in the Journal of Corporate Finance titled Predicting
Firms' corporate governance choices: Evidence from Korea showed that Korean
(South) firms perceived to be properly governed had share prices trading at
a premium of 160%.
This means investors were willing to pay 2,6 times the actual worth of the
shares of well-governed South Korean firms. The Mckinsey and Company 2002
investor opinion survey shows that for every 10 respondents eight would pay
a premium for the shares of a firm with strong corporate governance
practices. The premiums averaged 20-25% in Latin America and Asia, with the
highest premiums in the study recorded for Eastern Europe and Africa at 30%.
The distribution of premiums is telling. African firms that move to
strengthen corporate governance stand a better chance of attracting investor
funds. Here is hoping Zimbabwean firms are paying attention.
I could have given study after study showing beyond contest that good
corporate governance attracts investment into the company. Three lessons for
the Zimbabwean corporate arise from these empirical studies.
First, when Zimbabwe's national political and economic environment improves
investor dollars will flow in. However, only those organisations with strong
corporate governance practices will receive a meaningful share of the
investment inflows. Minister Gorden Moyo made a profound statement as
reported in the NewsDay when he said that 60% of the problems of state-owned
enterprises would dissolve by simply improving their corporate governance
practices and further said that ''it does not cost a cent'' to adopt good
corporate governance practices.
Second, firms do not need to be cajoled to adopt good corporate governance
practices. On the back of the overwhelming evidence, adopting good corporate
governance practices should be an automatic business decision. It saddens me
when firms have to wait for a national code of governance and statutory
instruments to begin to take action to practice good corporate governance.
Third, HR as business leaders in Zimbabwe needs to sell the idea of
corporate governance as a key organisation capability. Lack of cash is a
serious business challenge at present. A preliminary study I am doing on the
extent of liquidity challenges in Zimbabwe shows that for the half-year
ending June 30, listed firms are struggling to generate enough cash from
their operations to fund taxation and debt-servicing. One listed firm with a
very high P/E ratio generated negative cash flow from its operations.
Luckily, for the said firm to survive the first six months, cash generated
from last year is being used.
To survive, Zimbabwean firms have no choice but to adopt corporate
governance as an organisation capability. Competiveness is not strategy.
Competitiveness = strategy x organisation. Organisation is not structure.
Organisation is capability. That is the new HR's speciality.
Telescope Bits
Tax-free threshold in South Africa at the current exchange rate is US$667
compared to Zimbabwe's US$175.
minds and I engaged in a passionate discussion over the concept of
'organisation capability', the brainchild of Dave.
Organisation capability is what an organisation is known for, what it is
good at. For customers, organisation capabilities become the brand they
experience; for the investor, they are the intangibles that give them
confidence in future earnings; for the employee inside the company they are
the desired culture. Obviously, the implications of this concept are
profound since organisation capabilities connect the internal customers to
the external customers. By delivering on organisation capabilities,
customers and investors will keep signing cheques over to the firm.
Organisation capabilities are the deliverables of HR, transfoming HR from
being a mere cost centre to a profit centre.
Theory without practice is useless. We need to illustrate organisation
capabilities in practice. There are over 14 capabilities. We will consider a
few. Charity begins at home. A careful analysis of Econet shows that its
phenomenal success rests on three capabilities namely: talent, learning and
shared mindset. Talent as an organisation capability means: we are good at
and known for attracting, retaining and motivating competent and committed
people.
The organisation capability of learning means: we are good at and known for
generating and sharing ideas with impact. Shared mindset as an organisation
capability means: we are good at and known for making sure our external
customers (investors and customers) and employees have a positive experience
with the company.
To illustrate further, we will look at Econet's learning capability in
brief. Econet is good at benchmarking (comparing best international
standards), be it communications technology or store layout and
intelligently adapting these. It explains largely why Econet is almost
always first to the market with the latest technologies. South African
telecommunications giants are still struggling with the 3G technology while
Econet has already introduced the 4G technology. Of late, due probably to
its on-going network upgrading programme, the shared mindset capability is
weakening, judging by the frequency of customer complaints over service.
Back to my discussion with the two HR fundis. I pointed out that in their
latest work on capabilities, corporate governance was not mentioned. I had
felt that corporate governance should be a key capability. Younger and
Ulrich concurred with me that indeed corporate governance is a key
capability. They pointed out they had spread aspects of corporate governance
into capabilities such as risk (we are good at and known for anticipating
and managing disruption, predictability and variance) and speed capability
(we are good at and known for making important changes fast). The discussion
led me to launch into a full research on the relationship between corporate
governance and finance.
We shall define corporate governance as an organisation capability: we are
good at and known for making and implementing decisions that ensure the
long-term success of the business. We will proceed to look at some studies
on the relationship between corporate governance and investment.
According to a paper from the Norwegian School of Management titled
Corporate governance and real investment decision firms that are
well-governed have a higher probability of making investments, have higher
market to book ratios (investors willing to pay higher share prices share
compared to current after-tax profits per share) and better access to
outside financing.
The Deutche Bank studied Standards and Poor 500 firms and found that over a
two-year period firms with improving corporate governance outperformed those
that did not by an average of 19%. In a paper written by the financial
giant ABN/AMRO titled Corporate Governance in Brazil: Is there a link
between corporate governance and financial performance in the Brazilian
market?' revealed that in 2004, firms based in Brazil, with higher corporate
governance rankings received price-to-earnings ratios that were 20% higher.
Price- to-earnings ratio, also known as P/E simply shows how many times the
current share price is bigger than the current after-tax profits per share
(earnings per share).
Normally, the higher the P/E, the more confident investors are that the firm
will in future continue to produce good after-tax profits. They show this
confidence through buying the shares now to ''book'' for a portion of the
anticipated growth in earnings.
A paper published in the Journal of Corporate Finance titled Predicting
Firms' corporate governance choices: Evidence from Korea showed that Korean
(South) firms perceived to be properly governed had share prices trading at
a premium of 160%.
This means investors were willing to pay 2,6 times the actual worth of the
shares of well-governed South Korean firms. The Mckinsey and Company 2002
investor opinion survey shows that for every 10 respondents eight would pay
a premium for the shares of a firm with strong corporate governance
practices. The premiums averaged 20-25% in Latin America and Asia, with the
highest premiums in the study recorded for Eastern Europe and Africa at 30%.
The distribution of premiums is telling. African firms that move to
strengthen corporate governance stand a better chance of attracting investor
funds. Here is hoping Zimbabwean firms are paying attention.
I could have given study after study showing beyond contest that good
corporate governance attracts investment into the company. Three lessons for
the Zimbabwean corporate arise from these empirical studies.
First, when Zimbabwe's national political and economic environment improves
investor dollars will flow in. However, only those organisations with strong
corporate governance practices will receive a meaningful share of the
investment inflows. Minister Gorden Moyo made a profound statement as
reported in the NewsDay when he said that 60% of the problems of state-owned
enterprises would dissolve by simply improving their corporate governance
practices and further said that ''it does not cost a cent'' to adopt good
corporate governance practices.
Second, firms do not need to be cajoled to adopt good corporate governance
practices. On the back of the overwhelming evidence, adopting good corporate
governance practices should be an automatic business decision. It saddens me
when firms have to wait for a national code of governance and statutory
instruments to begin to take action to practice good corporate governance.
Third, HR as business leaders in Zimbabwe needs to sell the idea of
corporate governance as a key organisation capability. Lack of cash is a
serious business challenge at present. A preliminary study I am doing on the
extent of liquidity challenges in Zimbabwe shows that for the half-year
ending June 30, listed firms are struggling to generate enough cash from
their operations to fund taxation and debt-servicing. One listed firm with a
very high P/E ratio generated negative cash flow from its operations.
Luckily, for the said firm to survive the first six months, cash generated
from last year is being used.
To survive, Zimbabwean firms have no choice but to adopt corporate
governance as an organisation capability. Competiveness is not strategy.
Competitiveness = strategy x organisation. Organisation is not structure.
Organisation is capability. That is the new HR's speciality.
Telescope Bits
Tax-free threshold in South Africa at the current exchange rate is US$667
compared to Zimbabwe's US$175.
Is there a business case for corporate governance in Zimbabwe? Share at
brettchulu@consultant.com This e-mail address is being protected from
spambots. You need JavaScript enabled to view it .
By Brett Chulu
Minister meets labour in bid to calm strike tempers
"PUBLIC Service and Administration Minister Richard Baloyi held a private meeting with trade union leaders last night, in a last-ditch effort to..."
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Boeing pushes back 787 Dreamliner first delivery date
"(Reuters) - Boeing Co said on Friday it now expects delivery of the first 787 Dreamliner in the middle of the first quarter 2011, owing to a delay in..."
Click here (http://feeds.reuters.com/~r/reuters/businessNews/~3/Ac5UO2N-zAc/idUSTRE67Q0RQ20100827) to read the full story
U.S. growth seen revised down on imports and inventories
"WASHINGTON (Reuters) - U.S. economic growth likely was much weaker than initially thought between April and June, hurt by surging imports and as..."
Click here (http://feeds.reuters.com/~r/reuters/businessNews/~3/sNUHRtKfBjU/idUSTRE67N3B320100827) to read the full story
Zuckerberg: “Guess What? Nobody Wants To Make Lists.”
"A couple days ago, I wrote a post wondering if it wasn't time to change Facebook's social graph dynamic? Specifically, I called for a simplified..."
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Asia Falls on Global Worries
"Asian stock markets were lower Friday on concerns about the global economic recovery. Hopes of Japanese government action on the strong yen eased..."
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Oil falls to near $73 as stock markets retreat (AP)
"AP - Oil prices eased in Asia on Friday after two straight days of gains, taking a cue from regional stock markets which retreated amid expectations..."
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Interfin Bank HAVE NOT paid me US$ 5.3 million for my CFX Bank Equity The Zimbabwe Guardian
"...Group to come clean on the circumstances of their illegal take over of my Bank,CFX.Interfin must act mature and pay the US$ 5.3 million after which..."
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--
Ben Bernanke faces pressure to prop up US economic recovery
"• Bernanke faces toughest time yet after week of bad news
• Federal Reserve chairman's speech will be scrutinised by markets
• Committee split over..."
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BP boosted as FTSE 100 recovers from seven year low
"BP has moved higher following a positive note from analysts at Credit Suisse, which suggested the company's shares could soon benefit from the Gulf of..."
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SA union threatens split with ANC
"Thousands of workers take to South African streets as demands grow for early return of president from China
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Guess Who Is Trying To Trademark The Word “Face”? (And Guess Who Is Trying To Stop It?)
"When it comes to trademarks, Facebook is proving to be a bully. It is going after Teachbook in court for using a similar name, and already forced..."
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Ford to Unveil New Models in India
"Ford said it would introduce eight new vehicles in India by 2015 to capitalize on increasing demand in the fast-expanding car market."
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Toyota Recalls 1.3 Million Cars
"Toyota is recalling more than a million Corolla sedans and Matrix hatchbacks in the U.S. and Canada due to a fault that may cause the engines to..."
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-
Swiss halfway done giving UBS account info to US (AP)
"AP - The Swiss government said Wednesday it has handed roughly half the names of wealthy Americans demanded by Washington to solve a tax evasion..."
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Banks' Self-Dealing, Fake Demand Made Financial Crisis Much Worse
"Over the last two years of the housing bubble, Wall Street bankers perpetrated one of the greatest episodes of self-dealing in financial..."
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Zimplats swings back to profit
HARARE - Zimbabwe Platinum Holdings (Zimplats), the country's largest
producer of platinum swung back to profit this year after production of
platinum metal group nearly doubled, thanks to firming global metal prices
and an improvement in the country's economy, chief executive Alex Mhembere
said yesterday.
producer of platinum swung back to profit this year after production of
platinum metal group nearly doubled, thanks to firming global metal prices
and an improvement in the country's economy, chief executive Alex Mhembere
said yesterday.
The platinum miner, which is majority controlled by South Africa's Impala
Holdings said after tax profit for the year-end to June this year soared to
$122 million after posting a $25 million loss during the same time last
year, making it the most profitable company operating in Zimbabwe.
The loss during the June 2008 to June 2009 period was at the height of the
country's debilitating economic and political crisis after an election
deadlock between President Robert Mugabe and Prime Minister Morgan
Tsvangirai, who went on to form a unity government last year in February.
"The financial performance mirrored the excellent operational achievement in
the year," Mhembere said in a statement accompanying the results.
The company registered strong growth in turnover, which surged 236 percent
to $404 million, propelled by a surge in sales of the platinum group
metals, which include platinum, gold, rhodium and palladium.
Zimplats exports unrefined platinum group metals to South Africa, which has
the continent's only platinum refinery.
Platinum group metals output rose to 350,000 ounces from 190,532 ounces
after ore production increased significantly and together with improved
metal prices resulted in strong cash generation.
Zimplats managed to shave off 11 percent on the cost of producing an ounce
of platinum from the previous year, benefiting from an increase in
production, the replacement of expensive open pit ore with underground
mining and stringent cost controls.
Zimplats is the largest miner in the country and says it is ready to pump in
a further $500 million to expand its operations but is holding out until
there is clarity on the government's indigenisation policy. That will take
its total investment in Zimbabwe to $1 billion.
The government earlier this year published rules demanding that
foreign-owned companies should cede 51 percent of their shareholding to
locals, a move that scared investors and divided the unity government.
The government later revised the law and two weeks ago named committees to
recommend varying percentages of shareholding foreign-owned companies in the
different sectors of the economy must transfer to locals.
"A significant amount of time has been spent discussing the company's
indigenisation proposals with the relevant government authorities. The
proposals are yet to be accepted by the government," Mhembere said.
Zimplats wants spending in local infrastructure such as roads, schools and
hospitals to be converted into empowerment credits, which would mean it will
not be forced to cede majority shares to blacks.
Mugabe has previously said the government had accepted the principle of
empowerment credits as a vital component of the indigenisation law.
Mhembere said this year Zimplats had spend $10 million on renovating and
building new schools in Mhondoro-Ngezi where it operates and will officially
open a new $30 million electricity substation during the first quarter of
2011.
Zimplats also saw a jump in operating costs for the year to $223 million, up
61 percent from 2009, as a result of ramping up production. - ZimOnline.
Hoogstraten-link loan shark wanted by UK police
26/08/2010 00:00:00
by Staff Reporters
Ruthless ... Frank Buyanga in photo handout from Hertfordshire police
A LOAN shark believed to have seized up to 500 stands and houses from his customers in Harare has links with the notorious businessman Nicholas Van Hoogstraten, and is wanted by British police over mortgage fraud, New Zimbabwe.com can reveal.
Police in Harare said this week they were investigating Frank Tawanda Buyanga, 34, who has been running an illegal financial services company - Hamilton Finance -- after dozens of people handed over their title deeds to support their borrowing.
Police say people who borrowed money from Buyanga were repaying 10 percent of the sum monthly - and in the event of defaulting, it would be one percent more for everyday the premium was outstanding.
Customers failing to make any further payments have had their surety - mainly in housing stands and properties - forfeited by Buyana.
Police spokesman Chief Superintendent Oliver Mandipaka said: "At least 16 people who have come forward handed him their title deeds for properties worth a combined US$3,675 million."
Investigations by New Zimbabwe.com have revealed that Buyanga is on the wanted list of Hertfordshire police along with three other Zimbabweans - Canaan Moyo, 31, Greenbert Nekati, 28, and Regis Paradza, 47, -- who are wanted on unconnected charges.
Hertforshire police were investigating Buyanga for mortgage fraud relating to properties sold in Corby where he operated a mortgage firm when he fled to Zimbabwe last year.
But Buyanga concealed his UK legal troubles, and his victims would be horrified to learn that he has connections with Hoogstraten - a controversial British property magnate known for ill-treating tenants.
Hoogstraten -- referred to as a "bully" and an "emissary of Beelzebub" by two English judges - was in 2005 ordered to pay the family of slain business rival Mohammed Raja £6 million in a civil suit after a judge found on the balance of probabilities that he hired thugs to murder him "and not merely frightening or hurting him". The Appeal Court had earlier quashed Hoogstraten's 2002 manslaughter conviction for which he had been sentenced to 10 years in prison.
Following Hoogstraten's arrest in Zimbabwe for charging his tenants in foreign currency in January 2008, the Financial Gazette newspaper reported at the time that before entering court, the tycoon thought to be worth £200 million, "met his Zambian business partner Frank Buyanga, who was on hand to give him moral support as he faced trial in a country that he claims to have helped so much."
Why Buyanga posed as a Zambian is unclear. But his ability to dispense large amounts of money ranging between US$2,000 and US$60,000 in at least 40 reported cases, and his focus on real estate, will fuel suspicions that he is a proxy for Hoogstraten.
We have also established that Buyanga registered another company in Zimbabwe, Zimconcepts Limited, which offers to "supply various types of timber -- non-processed and processed -- from Zimbabwe, shipped to any part of the world".
Although both Britain and Zimbabwe are members of Interpol, the two countries have never made a fugitive exchange. When several bankers and political opponents of President Mugabe's government fled to Britain over the last decade, UK authorities rebuffed Zimbabwe's urging to deport them back.
But with more Zimbabweans settling in the UK and some increasingly involved in serious crime, Britain may be forced to rebuild bridges to bring serious offenders to justice.